Indian stock markets are anticipated to show volatility in the upcoming week as investors monitor the progress of the December quarter earnings season, developments in India-US trade relations, and key global economic data from the United States.
The Sensex and Nifty, major benchmark indices, broke a two-session losing streak on Friday, with gains supported by robust buying activity in IT and banking stocks. The Sensex climbed 188 points to close at 83,570.35, while the Nifty finished 29 points higher at 25,694.35.
Experts analyzing the Nifty technical outlook highlighted that immediate resistance levels are at 25,875, followed by 26,000 and 26,100, with support levels at 25,600 and 25,450. Analysts cautioned that a drop below 25,300 could escalate downside pressure and trigger corrective movements.
Market sentiment saw an uplift primarily driven by a significant surge in IT stocks, particularly companies like Infosys, TCS, and Tech Mahindra leading the gains. Looking forward, corporate earnings are expected to be a key market driver as several large and mid-cap companies across various sectors are set to unveil their Q3 results.
Investors are also keeping a close watch on developments in India-US trade relations and global cues, including crucial US economic indicators such as GDP growth, inflation trends, jobless claims, and PMI readings. Furthermore, fluctuations in gold and silver prices might impact equity markets, with precious metals facing pressure due to a strong US dollar and reduced geopolitical tensions.
Market experts suggest that a further cooling of gold and silver prices could prompt investors to shift funds from bullion to alternative assets like equities, potentially offering some support to the stock market.
